It is not mandatory for the IV category entities to submit their financial statements in 2020

SARAS reminds the IV category entities that on the basis of the 2019 amendment to the law on “Accounting, Reporting and Auditing”, they are not required to submit their 2019 financial statements before October 1, 2020. 

In addition, we remind you that financial statements of the IV category entities must be prepared in accordance with the simplified financial reporting standard, if the entity does not choose to use other standard of higher rank permitted by law. 

It is notable that the IV category entities may, on a voluntary basis, submit their 2019 financial statements, including the comparative information. Such financial transparency will help the given business-segment to increase access to finances and develop business relationships. In particular, submitted statements, (if tick marked accordingly in the system), will be shared with the credit information bureau registered in the National Bank of Georgia. The Bureau itself will use this and other information to develop the credit rating. The existence of such scores will simplify the relationship of the enterprises with the banks and other financial institutions.

In addition, other stakeholders, upon consent of the entity, can find submitted statements on reportal.ge (The rule for getting the consent can be found in Article 22 of the rule for submission of the statements). 

Please, take into consideration, that in 2021 the IV category entities are required to submit full set of their 2020 statements. As stipulated by the section 3 of the Standard, the full set of statements must include the following: 

1. Statement of financial position for the end of the reporting period of 2020 as well as opening and closing balances for 2019 reporting period;
2. Statement of income, expenses and undistributed profit for the periods of 2020 and 2019.